Ringing In the New Year With Tax Changes
What changes will the New Year bring in tax law? It is very likely that at least one of the changes coming up with the new tax year will affect most taxpayers. The amount of incorrect information being passed around about new taxes and rules is staggering and can cause misunderstandings that lead to missed payments. This can in turn lead to problems with taxes that may require the help of an attorney to straighten out. The attorneys at Amerio Law are always ready to help those who are threatened with legal action regarding taxes.
Changes Coming Up for 2014
There are a number of changes in both federal and state law that may impact the average person when it comes to paying taxes. Here are a few examples:
- Penalties under the Affordable Care Act. The most confusing aspect of taxation for most people is the penalty system implemented under the ACA. When these penalties will be assessed is in serious question due to the fact that there have been so many exemptions granted due to problems with implementation. However, those who fail to provide proof of health insurance could be in danger of penalties in the form of an increase in taxes.
- Net investment income tax. For higher earners, there is a new tax on the books in the form of a net investment income tax of 3.8 percent on interest, dividends and capital gains. Failure to understand when this tax is properly assessed could result in underpayment and lead to legal issues later with the IRS.
- Overseas investments. Members of Congress have suggested a retroactive tax on offshore earnings that have many investors concerned. If this tax is passed, overseas earnings could be taxed at a flat rate in return for declaring them as income. On the other hand, failure to declare these earnings could lead to potential tax trouble.
Specific to California is the new manufacturing tax exemption set to take effect July 1, 2014. This law allows manufacturers to obtain a partial exemption of sales and use tax. However, failure to understand the parameters of Assembly Bill 93 could result in conflict with the state taxation authorities.
For those who find themselves in trouble with state or federal tax officials, the attorneys at Amerio Law may be able to help. With advice on tax issues and representation for those who must appear in court, Amerio lawyers can help taxpayers solve problems and avoid penalties.